Short-term stock volatility doesn't mean AI is another dot-com bubble

The recent sharp swings in semiconductor stocks in several major markets have pushed the question — Is the AI craze doomed to burst? — back to the fore. Yet market volatility cannot reverse the tide of technological progress. AI remains the future.

AI is no castle in the air. Unlike the dot-com bubble of the early 2000s, when many internet companies had yet to establish viable business models, AI is underpinned by solid technological and industrial foundations and is already delivering tangible value across industries.

At the MAEXTRO Super Factory in Hefei, Anhui province, jointly built by JAC Group and Huawei, a digital twin plant enables real-time monitoring across the production process, while more than 1,800 intelligent robots support automated manufacturing.

In healthcare, AI models are assisting doctors with more accurate and efficient diagnoses. An AI-powered model integrating rare disease information and genetic data from the Chinese population has already been put into clinical use.

According to the Digital China Development Report (2025), released by the National Data Administration, China has become the world's largest holder of AI patents, accounting for 60 percent of the global total. The core AI industry has exceeded 1.2 trillion yuan ($177 billion) in scale.

Naysayers are often trapped by their limited understanding of applied AI. But technological evolution has never been halted by skepticism. AI is evolving from a mere chat tool into autonomous intelligent agents, transforming industries beyond digital empowerment through comprehensive intelligent restructuring.

A guideline released by the State Council, China's Cabinet, on deeply implementing the "AI Plus" initiative calls for significant progress in the deep integration of AI across six key sectors by 2027. By 2030, the intelligent economy is expected to become a significant growth driver for China's economy.

While routine, standardized tasks are being automated, new professions such as prompt engineers and AI ethics auditors keep emerging. In the AI era, job displacement and new opportunities go hand in hand.

Boom-and-bust cycles are inevitable for all emerging industries. Short-term capital frenzy does not equate to an economic bubble — it is merely a natural phase of industrial reshuffling. AI is no fleeting hype, but a genuine force reshaping our era.

Instead of fixating on whether the bubble will burst, we should have faith in the promise of technology and, more importantly, believe in its potential.